Disney Consumer Products, the business arm of $30 billion Walt Disney Company is entering the Indian personal care FMCG segment by introducing products such as shampoo and shower gel targeted at children of age group 4-14 years.
Disney would be marketing the good while it would be manufactured by a third-party. It is avoiding typing up with a large FMCG player to retain more margins. Earlier companies like Johnson & Johnson, Hindustan Unilever and Colgate have made unsuccessful attempts in this category.
Disney has earlier tied up with other brands for its consumer products. For chocolates, it tied up with Cadbury and with Cream Bell for ice creams. It also launched paints for kids room in collaboration with Nerolac and also has a brand of jeans with Indus Clothing Ltd.
Globally, Disney sells $26 billion worth of merchandise annually earning $4 billion in royalty. With the spending power of Indians going up and they are becoming more receptive to a specialised product; the venture may prove to be successful.
However, the product range would still be limited in India and would gradually expand to cater to adults too. But Indian families still being price sensitive and single brand product households, it would be a while before they get comfortable with the concept of buying toiletries for children. Source